The Lab Equipment Titan Trading at Half the Multiple Just Delivered Another Beat

"Thermo Fisher posted Q3 revenue of $11.12 billion, up 4.9% year over year, and delivered $5.79 in earnings per share against estimates of $5.50. That marked the company's 14th earnings beat in the last 16 quarters. The consistency reflects a diversified product portfolio across scientific instruments, reagents, and consumables serving research labs, hospitals, and biopharma customers. Danaher's Q3 was more complicated. Revenue reached $6.05 billion, up 4.4%, and the company beat estimates with $1.89 per share versus $1.72 consensus."

"But that followed a catastrophic Q2, when Danaher reported just $0.77 per share against expectations of $1.18. The 34.7% miss was the largest in years and revealed deeper issues than a single bad quarter. Annual earnings collapsed from $10.95 in 2022 to $4.54 in 2025, a 58.5% decline over three years. Revenue has fallen 18.9% from its 2021 peak of $29.5 billion."

"Thermo Fisher trades at 35 times earnings with a forward multiple of 25, while Danaher commands a 48 price-to-earnings ratio despite slower growth. That premium looks hard to justify when Danaher's quarterly revenue growth of 4.4% barely exceeds Thermo Fisher's 4.9%, yet Danaher trades at a 37% higher multiple. Thermo Fisher also generates superior profitability with 13.1% return on equity versus Danaher's 6.84%."

Thermo Fisher delivered Q3 revenue of $11.12 billion, up 4.9% year over year, and reported $5.79 in earnings per share, marking consistent beats across recent quarters. The business benefits from a diversified portfolio of instruments, reagents, and consumables serving research labs, hospitals, and biopharma customers. Danaher reported Q3 revenue of $6.05 billion and $1.89 per share but is recovering from a catastrophic Q2 and multiyear earnings decline. Annual earnings fell from $10.95 in 2022 to $4.54 in 2025 and revenue is down from the 2021 peak. Valuation and profitability metrics favor Thermo Fisher, while insider share sales at Danaher raise governance questions.

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